SO - The Southern Company | StockAlert.pro

Stock Details

The Southern Company (SO), a prominent company in the energy & transportation sector within the electric services industry, is based in USA and primarily trades on the NYSE.Currently, the stock is trading at $92.10. Over the past 52 weeks, it has ranged between $77.63 and $93.68. This places the current price at 98.3% of its 52-week high and 18.6% above its 52-week low. Recent trading volume was recorded at 15. The International Securities Identification Number (ISIN) for this stock is US8425871071.

Fundamentals

Valuation Metrics

P/E Ratio (TTM)

22.02

Near market average

Forward P/E

21.32

Earnings expected to grow

PEG Ratio

3.88

Potentially overvalued

Price to Book

2.96

EV/EBITDA

12.25

EPS (TTM)

$4.17

Price to Sales

3.63

Beta

0.37

Less volatile than market

How is SO valued relative to its earnings and growth?

The Southern Company trades at a P/E ratio of 22.02, which is near the market average of approximately 20, suggesting the market views it as fairly valued relative to its earnings. Looking ahead, the forward P/E of 21.32 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 3.88 indicates a premium valuation even accounting for growth.

What is SO's risk profile compared to the market?

With a beta of 0.37, The Southern Company is less volatile than the overall market. This means when the market moves up or down by 10%, this stock typically moves less than 10% in the same direction. Lower beta stocks are often preferred by conservative investors seeking stability. The price-to-book ratio of 2.96 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Performance & Growth

Profit Margin

16.50%

Operating Margin

27.80%

Return on Equity

12.20%

Return on Assets

3.46%

Revenue Growth (YoY)

17.00%

Earnings Growth (YoY)

17.50%

How profitable and efficient is SO's business model?

The Southern Company achieves a profit margin of 16.50%, meaning it retains $16.50 from every $100 in revenue after all expenses. This is an impressive margin, indicating strong pricing power and efficient cost management that allows the company to generate substantial profits. The operating margin of 27.80% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 12.20% and ROA at 3.46%, the company achieves moderate returns on invested capital.

What are SO's recent growth trends?

The Southern Company's revenue grew by 17.00% year-over-year, showing steady progress in growing the business. This positive trajectory indicates the company maintains competitive positioning in its markets. Earnings increased by 17.50% year-over-year, outpacing revenue growth through improved margins. These growth metrics should be evaluated against ELECTRIC SERVICES industry averages for proper context.

Dividend Information

Dividend Per Share

$2.88

Dividend Yield

3.26%

Ex-Dividend Date

5/19/2025

Dividend Date

6/6/2025

What dividend income can investors expect from SO?

The Southern Company offers a dividend yield of 3.26%, paying $2.88 per share annually. This above-average yield of 2-4% provides meaningful income while still allowing the company to reinvest for growth. It compares favorably to the S&P 500 average and offers competitive returns versus bonds in the current rate environment. To receive the next dividend, shares must be purchased before the ex-dividend date of 5/19/2025.

How reliable is SO's dividend for long-term investors?

The dividend sustainability can be assessed through the payout ratio - The Southern Company pays $2.88 per share in dividends against earnings of $4.17 per share, resulting in a payout ratio of 69.06%. This high payout ratio of 60-90% leaves limited earnings for reinvestment. While currently sustainable, there's less buffer for dividend growth or protection during earnings downturns. The next dividend payment is scheduled for 6/6/2025.

Company Size & Market

Market Cap

$101.03B

Shares Outstanding

1.10B

Book Value/Share

$30.79

Asset Type

Common Stock

What is SO's market capitalization and position?

The Southern Company has a market capitalization of $101.03B, classifying it as a large-cap stock ($10B-$200B). Large-caps are typically industry leaders with established business models, offering a balance of stability and growth potential. They often provide dividend income and are core holdings in institutional portfolios. With 1.10B shares outstanding, the company's ownership is widely distributed. As a major player in the ELECTRIC SERVICES industry, it competes with other firms in this sector.

How does SO's price compare to its book value?

The Southern Company's book value per share is $30.79, while the current stock price is $92.10, resulting in a price-to-book (P/B) ratio of 2.99. This reasonable premium to book value suggests the market values the company's earnings power and intangible assets appropriately. Most profitable companies trade between 1-3x book value. As a common stock, this represents equity ownership with voting rights.

Analyst Ratings

Analyst Target Price

$92.88

0.85% upside potential

Analyst Recommendations

Strong Buy

Buy

Hold

Sell

Strong Sell

How reliable are analyst predictions for SO?

20 analysts cover SO with 30% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The mixed views reflect uncertainty about the outlook. The consensus target of $92.88 implies 0.8% upside, but targets are often adjusted to follow price moves rather than predict them.

What is the Wall Street consensus on SO?

Current analyst recommendations:3 Strong Buy, 3 Buy, 12 Hold, 1 Sell, 1 Strong Sell. The neutral stance suggests uncertainty or fair valuation at current levels.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.

Fundamentals last updated: Jul 1, 2025, 03:16 AM

The Southern Company (SO) Stock